What is skip tracing in real estate?

Sometimes, locating property owners or potential leads is important for legal and real estate professionals. But, what if they have seemingly disappeared? This is where you can use skip tracing to your advantage. Debt collectors, private investigators, real estate professionals, lawyers, and process servers commonly use this process. But, what is skip tracing in real estate, and why is it so important? Let’s find out.

How important is skip tracing in the real estate industry?

Skip tracing, as the name suggests, is locating individuals who are otherwise difficult to find. These may include real estate owners or absentee landlords who have failed to fulfill their obligations in some way or the other. That is to say, skip tracing helps find property owners who are delinquent on property taxes, behind on mortgage payments, or have left a property vacant for long. That’s why it’s important to track them out – whether for debt collection, legal proceedings, or negotiating property sales. Property investors and real estate agents also use it to trace heirs to an estate or locate people interested in selling their properties.

When do agents and investors use skip tracing?

Skip tracing is a powerful tool in real estate for several reasons. These include:

• Locating owners of distressed properties: Investors often seek out owners of properties that are abandoned, foreclosed, or in disrepair. Skip tracing helps find these owners to negotiate a potential sale.
• Finding heirs: When dealing with probate properties, it’s essential to locate all heirs to discuss the sale of the inherited property.
• Direct marketing: Agents and real estate investors use skip tracing to build targeted marketing lists for direct mail campaigns, phone calls, or emails. It increases their chances of finding motivated home sellers.

How does real estate skip tracing work?

Skip tracing involves gathering and analyzing information from various sources to find a person’s current whereabouts. Agents can start their search with whatever information they have about the person. This could include the name, address, phone number, email address, and social media profile. Here’s how to skip trace for real estate. 

Look up database searches

You can utilize public records, online databases, social media platforms, and proprietary skip-tracing services to search for clues. These sources can provide critical information such as current addresses, phone numbers, employment details, and more. Remember to cross-reference the collected data to verify its accuracy. This step ensures that you have the correct information and reduces the risk of reaching out to the wrong person. Once verified, you can reach out to the person using the most reliable contact information.

Utilize reliable tools and techniques

Skip tracing can be done manually. However, it’s easier and more efficient online with the help of advanced software tools. You can utilize the following:

• Online databases for contact information.
• Public records such as county records, court documents, and property tax records. These can provide valuable leads.
• Social media platforms such as Facebook, LinkedIn, and Instagram for insights into a person’s whereabouts and connections.
• Professional skip tracing services specializing in providing comprehensive skip tracing reports.

What are the pros and cons of skip tracing in real estate?

Pros

• Great for finding hard-to-locate individuals.
• Comprehensive data using a variety of sources, including public records.
• Saves time compared to searching manually.
• Helps debt collectors recover debts.
• Helps lawyers serve legal documents by finding missing people.
• Assists real estate agents in finding property owners.

Cons

• Raises concerns about privacy and potential legal problems.
• The accuracy depends on the quality of available data; outdated info can lead to errors.
• Can be seen as invasive and raise ethical questions.

What are the legal and ethical points to consider when skip tracing?

While skip tracing is a valuable tool, it’s important to use it responsibly. Always ensure compliance with laws and regulations such as the Fair Credit Reporting Act (FCRA) and respect privacy concerns. Keep in mind that obtaining information through legal means and using it ethically will help maintain integrity and trust in your real estate profession.

Last thoughts

Skip tracing is an essential strategy in real estate for locating hard-to-find property owners and real estate leads. By leveraging various techniques to gather and verify information, real estate pros can uncover valuable opportunities that might otherwise be missed. As long as it’s done ethically and legally, skip tracing can be a game-changer in the competitive real estate market.

FAQs

How much does it cost to skip trace? 

The cost of skip tracing varies but typically ranges from $20 to $100 per search, depending on the complexity and the service provider. For complex cases or when using high-end service providers, you can expect higher skip-tracing costs. 

Is skip tracing accurate? 

If you are using comprehensive and up-to-date databases, chances are, your skip tracing will be quite accurate. But, remember that the accuracy depends on the quality of the data sources and the skill of the skip tracer.

Is skip tracing the same as a background check? 

No, they are different. Skip tracing focuses specifically on locating a person, while a background check involves gathering comprehensive information about an individual’s history, including criminal records, employment history, and financial situation.

Are there any risks in skip tracing?

The main risks involve potential breaches of privacy laws or using outdated or incorrect information. Remember that it’s crucial to ensure compliance with legal standards and use reputable sources.

How long does skip tracing take? 

The time it takes to complete a skip trace can vary. While simple cases might take just a few hours, more complex or old cases could take several days or weeks.

Written by Ramona Sinha. June 21, 2024

Ramona is the Senior Content Writer for Kukun. This experienced blogger uses simple and succinct words to decipher the complex phenomenon called life. She has written articles covering a broad range of topics, such as real estate, lending and mortgage, finance, business, taxation, home designs, home improvement projects, decor concepts, and more. An avid traveler, she’s a digital nomad at heart and an animal lover from the depth of her soul.